Friday, December 22, 2006

BCDA urged to restore investor confidence

The Philippine Star

The private sector developer of the Poro Point seaport and bulk terminal in San Fernando, La Union has urged the Bases Conversion Development Authority (BCDA) to "take active steps to restore lost investor confidence in the government and the BCDA" in the aftermath of the violent failed takeover of the facility in August this year.

The Poro Point Industrial Corp. (PPIC) expressed concern that BCDA officials "could be under the illusion that the violence which marred the failed takeover bid did not dent investor confidence in the government".

It will be recalled that armed groups assaulted the Poro Point seaport last Aug. 5 in a bid to remove the PPIC from the management of the facility. According to BCDA president Narciso Abaya, he ordered the takeover after Department of Environment and Natural Resources (DENR) officials issued a cease-and-desist order (CDO) against PPIC.

Environmental Management Bureau (EMB) Director Joel Salvador, however, denied authorizing Abaya to enforce the DENR CDO. "It is absolutely without our approval and consent," Salvador said in a press statement.

Various foreign chambers of commerce decried Abaya’s move against the Poro Point developer. Robert Sears of the American Chamber of Commerce described the incident as a "flip flop on policy issues." Henry Schumacher of the European Chamber of Commerce said "conflict like this could be an indication that the government does not have the ability to honor its contract."

Michael Wooton, chairman of the British Chamber of Commerce Philippines said the Poro Point incident "could be another case of PIATCO which is not good for foreign investors".